Let's assume Ben can produce 3 units of a material good (M) or 3 units of a spiritual good (S) in a day, while Cal can produce 1 M or 2 Ss in a day. Both Ben and Cal can potentially produce a larger combination of M and S
A) if Ben specializes in S and Cal in M and they exchange with one another.
B) if Ben specializes in M and Cal in S and they exchange with one another.
C) if Ben specializes in both goods and doesn't exchange with Cal.
D) only if Cal finds a way to also produce 3 M and 3 S per day.
B
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Answer the next question based on the following payoff matrix for two oligopolistic firms in which the numbers indicate the profit in thousands of dollars for a high-price or a low-price strategy. Firm X? High PriceLow PriceFirm YHigh priceA = $625A = $725??B = $625B = $475?Low priceA = $475A = $400??B = $725B = $400If both firms collude to maximize joint profits, the total profits for the two firms will be
A. $1,200,000. B. $1,500,000. C. $1,400,000. D. $1,250,000.
Intertemporal decisions involve economic decisions
A) made within a given period of time. B) made in between two periods of time. C) involving trade-offs across periods of time. D) that ignore concerns about the future.
The determinants of labor supply include:
A. culture and other opportunities. B. supply of other factors and output prices. C. culture and technology. D. other opportunities and technology.
James is a resident of the U.S. and has accrued capital gains on an asset. If James sells the asset, ________.
A. its purchase price will include the amount of capital-gains tax payable B. he will realize the gain and owe capital-gains tax C. his capital-gain will be tax free D. the buyer of the asset will owe capital-gains tax